Connecticut VA Loans, Priced by Planning Region, Not County
Learn how Connecticut’s planning regions set 2026 loan limits, how the veteran exemption really works on your tax bill, and what Groton and New London buyers should plan for. We structure it with no lender overlays.
Connecticut no longer uses counties for loan limits, and its veteran exemption comes off your assessment, not your tax bill.
A Connecticut VA loan is a home loan guaranteed by the U.S. Department of Veterans Affairs. With full entitlement it needs $0 down, has no monthly mortgage insurance, and has no VA minimum credit score. Connecticut has quirks most sites miss. Loan limits now follow nine planning regions instead of eight counties. The veteran exemption is a cut to assessed value, set town by town. We are The JD.Mortgage Team at PRMG, a no-overlay VA lender. If another lender said no, that is usually where our work starts. 25+ years, 3,100+ closed loans, Scotsman Guide Top Originator 2026. Lending in 49 states. New York excluded.
Last updated: October 6, 2026
Guidance reference: VA Pamphlet 26-7, Ch. 2, 6 and 13 (VA updated July 9, 2026); Ch. 4 (VA updated August 26, 2026); Ch. 10 (VA updated August 6, 2026); Ch. 11 (VA updated July 10, 2026); Ch. 12 (VA updated August 12, 2026); Ch. 16 (VA updated August 19, 2026); VA Circular 26-19-22 (August 8, 2019); Ginnie Mae MBS Guide, Ch. 24 (effective September 14, 2026)
Connecticut VA Loans: The Short Answer
The short version for Connecticut: $0 down with full entitlement, no monthly mortgage insurance, and no credit score floor from VA. Residual income, not a score, is what carries a VA approval. We do not stack extra lender rules on top.
As of Q3 2026 (September 2026): VA’s chart for the money left over each month after your bills (VA calls this residual income) is $1,025 a month for a family of four in the Northeast on loans of $80,000 or more (VA Pamphlet 26-7, Ch. 4). VA uses 41% as a check point, not a limit, for how much of your monthly income goes to debt payments (your debt-to-income ratio). Above 41%, we take a closer look at your file. That step is not needed if your money left over is at least 20% above the chart. If it is not, your loan can still be approved when a supervisor signs a note that lists the strengths in your file. VA has no minimum credit score (VA Pamphlet 26-7, Ch. 4; 38 CFR 36.4340). The 2026 county loan limit in Connecticut is $832,750 in most counties, up to $977,500 in the Greater Bridgeport and Western Connecticut planning regions. Full entitlement (your full VA home loan benefit) removes the VA loan limit (VA.gov loan limits; FHFA 2026 limits). Funding fee (a one-time VA fee) on first use: 2.15% with less than 5% down. After first use, with less than 5% down: 3.3%. On an IRRRL (VA’s refinance to lower your rate): 0.5%. With VA disability compensation: $0 (VA.gov funding fee table, effective April 7, 2023).
What Is a Connecticut VA Loan?
A Connecticut VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs and made by a private lender. Because VA guarantees part of the loan, the lender can approve it with no down payment on full entitlement and no monthly mortgage insurance. It is the same federal program in every state. What changes in Connecticut are the state’s tax rules, its insurance market, its county loan limits, and how closings work here, which is what the rest of this page covers.
Connecticut VA Loan Rules and Veteran Tax Benefits
Connecticut veteran property tax relief is built in layers. The rules sit in Connecticut General Statutes Section 12-81, subdivisions (19) through (26), plus Sections 12-81g and 12-81l, per the Office of Policy and Management.
| Layer | Who qualifies | Amount |
|---|---|---|
| Basic veteran exemption | Honorably discharged veterans with at least 90 days of wartime service, or their survivors | $1,000 of assessed value |
| Disabled veteran exemption | Veterans with a VA disability rating | Larger amount that rises with the rating |
| Additional state exemption | Veterans under the income limit | Up to 200% of the local exemption |
| Local option | Set by your town | Varies by town |
Here is where most explanations go wrong. The $1,000 is not $1,000 off your tax bill. It comes off your assessed value. Your town then multiplies what is left by its mill rate. At an example mill rate of 30, a $1,000 exemption saves about $30 a year. The disabled veteran layer and the local option are where real money shows up, so ask your assessor for the exact figure.
How to apply. File your DD-214, or a certified copy, in the land records of your town before October 1. If you want the income-based extra exemption, you file with the assessor every two years, between February 1 and October 1. The forms are M-59a for the taxpayer and M-59 for the town. The home must be where you live.
Surviving spouses. The basic exemption also reaches certain survivors of qualifying veterans. The assessor will ask for the documents.
Now the clarifier. Connecticut’s exemption uses the words “honorably discharged” and a 90-day wartime service test. That is a Connecticut rule for the tax benefit only. VA home loan eligibility is a different test. VA needs service other than dishonorable and a Certificate of Eligibility. See our VA loans FAQ. A veteran can qualify for the loan and not the exemption.
What it does to your approval: we qualify you on the full escrowed payment, taxes included. A lower tax line means a lower debt ratio and more residual income. Because Connecticut exemptions vary by town and income, we use the tax figure the assessor confirms, not a guess.
Why Connecticut VA Files Land Here
A Connecticut VA file usually comes to us after a no somewhere else. Most of the time the no came from a lender rule, not VA. We underwrite to VA Pamphlet 26-7 and 38 CFR only, and we manually underwrite files the software will not approve.
The wait before you can refinance is a VA rule too. It covers a VA IRRRL (a refinance to a lower rate) and a VA cash-out that pays off a VA loan. VA loans are also sold into bonds backed by Ginnie Mae. For loans in those bonds, Ginnie Mae adds its own wait (Ginnie Mae MBS Guide, Ch. 24). We flag these early so they never surprise you at closing.
Read what no-overlay lending covers and what it does not.
Not sure how Connecticut’s veteran tax rules change your payment? We run the numbers with your real tax line before you make an offer.
Run My NumbersThe VA Funding Fee in Connecticut: 2026 Table
Every Connecticut VA purchase carries a funding fee unless you are exempt. It is set by VA, not by us, and it is the same in every state.
| Loan type | Fee |
|---|---|
| First use, less than 5% down | 2.15% |
| First use, 5% to 9.99% down | 1.5% |
| First use, 10% or more down | 1.25% |
| After first use, less than 5% down | 3.3% |
| Cash-out refinance (first / later use) | 2.15% / 3.3% |
| IRRRL (streamline refinance) | 0.5% |
| Veteran receiving VA disability compensation | $0 (exempt) |
Source: VA.gov funding fee table, effective April 7, 2023. More on exemptions and refunds: VA funding fee guide. We do not publish rates on this page because rates change daily.
How Connecticut Sellers Can Pay Your Costs
Here is where most explanations go wrong: the 4% limit is not a cap on everything the seller pays. Normal closing costs sit outside it. The 4% covers concessions, like paying off a buyer’s debt or paying the funding fee (VA Pamphlet 26-7, Ch. 8).
Write the request into the offer, not after inspection. See how to structure it.
Connecticut Military Markets and Planning-Region Loan Limits
In 2022 Connecticut’s nine planning regions replaced its counties as county-equivalents for federal data, per the Census Bureau. FHFA now sets limits by planning region. For 2026, Greater Bridgeport and Western Connecticut are $977,500. Naugatuck Valley is $851,000. Every other region is $832,750, per the FHFA 2026 file. The limit matters only if part of your entitlement is in use.
Naval Submarine Base New London (Groton)
The sub base is the heart of Connecticut’s military housing market. Sailors, officers and shipyard-linked civilians look in Groton, Ledyard, Gales Ferry, Waterford, Norwich and Stonington. The Southeastern Connecticut region is $832,750. Older capes and ranches are common. So are homes on private wells and septic in Ledyard and Preston.
U.S. Coast Guard Academy (New London)
Academy staff and faculty buy in New London, Waterford and East Lyme. Shoreline homes can sit in flood zones. Same region, same $832,750 limit.
Bradley Air National Guard Base (Windsor Locks)
Air Guard members at Bradley often live in Windsor, Enfield, Suffield, and the Hartford suburbs. The Capitol region is $832,750. Many are traditional Guard members with civilian jobs, so we build income from both.
Fairfield County commuters
Veterans working toward New York often buy in Stamford, Norwalk, Danbury or Bridgeport. This is where the higher limits apply: $977,500 in Western Connecticut and Greater Bridgeport. It matters most when you still have a VA loan open.
The region is set by the town the house sits in. A sailor who buys in Groton is in Southeastern Connecticut. A buyer in Hartford is in the Capitol region. Both are at $832,750 in 2026, but Fairfield County towns are not. We check the region for every address you send us.
Groton and New London also have a lot of rentals. That can help if you expect to PCS again. A home that rents well gives you options when orders come.
How a Connecticut VA Loan Works, Start to Finish
Start the file
Two minutes online. No SSN to start. We pull your Certificate of Eligibility for you in most cases.
Build the approval
We map income, entitlement, and residual income. If the file needs a manual review, we structure it instead of declining it.
Write the offer
Your pre-approval has already been reviewed, and the seller-concession request goes into the contract.
Appraisal
We order the appraisal in VA’s online system. In most cases, VA then picks the appraiser from its own list. If the value may come in low, the Tidewater step gives two business days to send in recent sales first. How the VA appraisal works.
Close
Sign, fund, and move in. VA expects you to occupy within a reasonable time, usually 60 days.
Who Qualifies for a Connecticut VA Loan
| Requirement | What it means |
|---|---|
| Service | Qualifying active duty, veteran, National Guard or Reserve service, or an eligible surviving spouse. Exact time-in-service rules: VA.gov eligibility. |
| Discharge | Not dishonorable, for most Veterans. If you qualify only through 6 years in the Guard or Reserve, it must be honorable. These are VA rules, not state tax rules. |
| Certificate of Eligibility | Proves your entitlement. We request it for you in most cases. |
| Occupancy | You plan to live in the home, usually within 60 days of closing. A spouse can satisfy occupancy during a deployment. |
| Credit | No VA minimum score. Past events are reviewed in context. |
| Income | Stable and likely to continue. VA also checks residual income against the regional table. |
Where Connecticut VA Buyers Lose Money
Conveyance tax. Connecticut charges a state conveyance tax of 0.75% on residential sales up to $800,000 and 1.25% from $800,000 to $2.5 million. Towns add 0.25% to 0.5%. The seller pays it before the deed is recorded, per the Office of Legislative Research. You still should know it, because it shapes how much room a seller has to pay your costs.
Crumbling foundations. Many homes in north-central and eastern Connecticut were built with concrete that contains pyrrhotite, a mineral that can make foundations crack over time. A VA appraisal is not a foundation test. If a home in that area was built in the 1980s or 1990s, ask about core testing before you remove the inspection contingency.
Mill rates and revaluation. Each town sets its own mill rate, and towns revalue on a cycle. The seller’s tax bill may not match yours. We budget with the current mill rate on the sale price assessment.
Shoreline flood. Groton, New London and the Fairfield County shore have flood zones. Flood insurance is required in a FEMA special flood hazard area. It can change your payment by hundreds a month.
Condo and HOA fees. Condos are common near Stamford and the Hartford suburbs. VA must approve the project, and fees count against your ratio. Check approval before you fall in love.
Court foreclosure. Connecticut forecloses through the courts, so a default takes longer and costs more than in power-of-sale states. That is one more reason we size the payment to your residual income, not just the ratio.
Connecticut Property Types That Need Extra Care
VA’s minimum property requirements are simple: safe, sound, sanitary. Connecticut housing tests them in a few places.
Older homes. Colonials and capes from before 1978 can have peeling lead paint. VA treats defective paint as a repair item.
Oil heat and tanks. Many homes still run on oil. The furnace or boiler must heat the home safely. Old underground tanks raise questions an appraiser will note.
Wells and septic. Rural towns in eastern and northwestern Connecticut rely on private wells and septic. Water testing takes time, so build it into the contract.
Two- to four-family homes. New London, Norwich, Hartford and New Haven have many multi-family homes. VA allows up to four units if you live in one. Rent from the others can help you qualify.
Condos. VA must approve the whole condo community, not just your unit. If a Stamford condo is not on VA’s list, your lender can ask VA to review it. That takes time, and VA may say no. VA cannot issue its value for the home until the community is approved. So check the list before you pay for an appraisal.
Foundations. In parts of the state, foundation cracking is a known issue. Get a proper inspection. Do not rely on the appraiser to catch it. The appraiser checks VA standards, not concrete chemistry.
If repairs are needed, the contract should say who fixes what and by when. The home must meet VA’s basic safety and condition rules before VA backs the loan. Repairs can be done before closing, or the lender may hold money aside so the work is done after closing.
Common Connecticut VA Scenarios We Structure
Submariner PCS to Groton with a house still owned elsewhere
Example: a sailor keeps a home with a $300,000 VA loan in Virginia and rents it out. Entitlement in use is $75,000. The Southeastern Connecticut limit is $832,750, and 25% is $208,187.50. Remaining entitlement is $133,187.50. Four times that is $532,750. In this example he can borrow up to $532,750 in Groton with $0 down.
Example: second VA loan in Groton
- Region limit: $832,750
- 25% of limit: $208,187.50
- Entitlement in use: $75,000
- Zero-down ceiling in this example: $532,750
Disabled veteran in Ledyard
Example: a veteran with a 70% rating buys in Ledyard. She files her DD-214 with the town clerk before October 1 and applies for the disabled veteran exemption. She pays no funding fee, because VA exempts veterans receiving disability compensation. We use the tax figure the assessor confirms.
Bradley Air Guard member with a civilian job
Example: a Guard member earns a civilian salary and drill pay. We use both with a history. If the system result is not clean, we look at manual underwriting.
Stamford buyer using the higher limit
Example: a veteran still has $40,000 of entitlement tied up. In Western Connecticut, 25% of $977,500 is $244,375. Remaining is $204,375. Four times that is $817,500 with $0 down.
Each example uses made-up numbers to show the math. Your real file uses your income, your town’s confirmed tax figure, and your real entitlement.
For the Groton example, the Virginia home stays a rental. Under VA rules, its rent can cancel out that home’s payment, but it never counts as extra income. VA does not require a lease or a rental history for this. With no lease, we look for a very strong rental market.
Have orders, a rating letter, or a file another lender turned down in Connecticut? Send it. We tell you what VA’s rules actually allow.
Ask Us to ReviewConnecticut VA Loan vs Conventional vs FHA
| Feature | VA | Conventional | FHA |
|---|---|---|---|
| Down payment | $0 with full entitlement | 3% to 20% | 3.5% at 580+ |
| Monthly mortgage insurance | None | PMI under 20% down | Annual MIP |
| Minimum credit score | None set by VA | None on DU; 620 manual | 500 with 10% down; 580 with 3.5% |
| Upfront fee | Funding fee (waived with disability compensation) | None | Upfront MIP |
| Debt-to-income | 41% benchmark plus residual income | Up to 50% on DU | Set by automated or manual rules |
Sources: Fannie Mae Selling Guide B3-5.1-01; HUD Handbook 4000.1; VA Pamphlet 26-7. For most eligible Connecticut buyers, VA wins on payment. The exceptions are covered in the FAQ below.
Connecticut VA Loan Myths, Corrected
❌ Myth: “Connecticut veterans get $1,000 off their property tax bill.”
✅ Fact: The $1,000 basic exemption comes off assessed value, not the bill. Your savings equal the exemption times your town’s mill rate. The disabled veteran and local option layers add more.
❌ Myth: “Connecticut VA loan limits are set by county.”
✅ Fact: Connecticut’s nine planning regions replaced counties for federal data. FHFA sets 2026 limits by region: $977,500, $851,000, or $832,750.
❌ Myth: “You need a 620 credit score for a VA loan.”
✅ Fact: VA sets no minimum score. The 620 you heard is a lender overlay.
❌ Myth: “VA loans take forever to close.”
✅ Fact: A prepared VA file closes on a normal contract timeline. Slow closings come from slow lenders.
Connecticut VA Loan Frequently Asked Questions
What is the VA loan limit in Connecticut for 2026?
There is no VA loan limit with full entitlement. When part of your entitlement is in use, the 2026 limit is $977,500 in Greater Bridgeport and Western Connecticut, $851,000 in Naugatuck Valley, and $832,750 in every other planning region, including Groton and Hartford.
How much is the Connecticut veteran property tax exemption?
The basic exemption is $1,000 of assessed value for honorably discharged veterans with at least 90 days of wartime service. Disabled veterans get a larger exemption based on their rating. Veterans under the income limit can get up to 200% more from the state, and towns can add their own.
How do I apply for the veterans exemption in Connecticut?
Record your DD-214, or a certified copy, in your town’s land records before October 1. For the income-based extra exemption, apply with the assessor every two years between February 1 and October 1 using Form M-59a. Ask the assessor which layers apply to you.
Can I get a VA loan near the Groton sub base?
Yes. Groton, Ledyard, Waterford, Norwich and nearby towns are in the Southeastern Connecticut planning region. With full entitlement you can buy with $0 down and no loan cap. If a VA loan is still open, the $832,750 regional limit sets your zero-down ceiling.
Who pays the conveyance tax on a Connecticut home purchase?
The seller pays Connecticut’s conveyance tax before the deed is recorded. The state rate is 0.75% up to $800,000 and 1.25% from $800,000 to $2.5 million, plus a town rate of 0.25% to 0.5%. It does not add to your closing costs, but it affects the seller’s net.
Can I use a VA loan on a home with a crumbling foundation in Connecticut?
Only if the home meets VA minimum property requirements. A VA appraisal is not a foundation test. In areas with known pyrrhotite problems, get a foundation inspection or core test before your inspection contingency ends. We help you plan the contract timing.
Do disabled veterans pay the VA funding fee in Connecticut?
No, not if you receive VA compensation for a service-connected disability. The exemption is federal and applies in every state. It lowers your loan amount, which can lower your payment. The Connecticut property tax exemption is a separate state benefit you apply for with your town.
Which planning region is Stamford in for loan limits?
Stamford is in the Western Connecticut planning region. Its 2026 limit is $977,500. That only matters if part of your VA entitlement is still in use. With full entitlement there is no VA loan limit, and approval depends on income, residual income and credit.
What credit score do I need for a VA loan in Connecticut?
VA does not set a minimum credit score. Many lenders add their own floor, often 620. We lend to VA’s rules without adding one, so a Connecticut file is judged on residual income, payment history, and the full picture.
Is there a VA loan limit in Connecticut?
With full entitlement there is no VA loan limit. The county conforming limit only applies when part of your entitlement is still tied to another VA loan. Then it sets how much VA will guarantee and whether a down payment is needed.
Can the seller pay my closing costs on a VA loan?
Yes. The seller can pay your normal closing costs with no cap, plus concessions of up to 4% of the reasonable value. Concessions can pay off debts, cover the funding fee, or prepay taxes and insurance.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation are exempt, along with some surviving spouses and Purple Heart recipients on active duty. If a rating is granted after closing, the fee may be refunded.
Can I get a VA loan with a high debt-to-income ratio?
Yes. VA uses 41% as a check point, not a ceiling. Above it, we look closer unless the money left over each month is at least 20% above VA’s chart. If it is not, a supervisor can still approve the loan with a signed note listing your strengths. We close files above 41% when the money left over supports them.
Related Connecticut Resources
About the Author
J.D. Peck is an Area Manager and Mortgage Loan Originator (NMLS #314883) with the JD.Mortgage Team at Paramount Residential Mortgage Group, Inc. (NMLS #75243), based in Colorado Springs. 25+ years, 3,100+ closed loans, Scotsman Guide Top Originator 2026. Lending in 49 states. New York excluded.
Last updated: September 24, 2026. VA loan rules sourced from VA Pamphlet 26-7, 38 CFR, VA.gov, and the Ginnie Mae MBS Guide, which govern over any other source. Loan limits from FHFA 2026 values. Connecticut tax and property facts from official Connecticut state sources linked above.
Get Your Connecticut VA Numbers Before You Shop
We check your entitlement, residual income, and the real tax and insurance line for your county, then show you the payment and the approval path before you write an offer.
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Source: JD.Mortgage Team at PRMG, Connecticut VA Loans: No Overlays, No Minimum Credit Score, updated September 2026, https://jd.mortgage/va-loans-connecticut/
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